Raghuram Rajan is out

[danger007]

Politics is Played at both Level.Well Raghuram Rajan was Exceptional It was his Decision in the End. But there are abundant Talent in India to fill His Shoes.

I Will Wait For New RBI Governor Until I Criticize Govt.Because Appointment will be in Direct Govt Authority And It Implications Will Direct Effect there Policy

Do we need rubber stamps in such high profile institution... well

http://m.economictimes.com/news/eco...raghuram-rajans-exit/articleshow/52812646.cms

 

[livingdead]

both subbarao and jalan were not yes men... subbarao resisted much more from the then govt to reduce interest rate, as beating inflation was his top priority...
jalan was also very conservative banker.. and claimed that India has low exposure to 2008 crisis (one can criticize him for opportunity cost of being too conservative).. but it proves he was pretty independent...
its the nature of the game, FM will want short term gain, RBI is supposed to secure long term future.. FM will want to eat all the candies in jar, and RBI is supposed to say no...

 

[Kim Philby]

I can very well imagine from this discussion that after one year One party is going to tell the other party "I told you so!!"..........Good. At least we Indians are only discussing it here, no Pakistani or Chinese here.

BTW, I assumed his exit when he said that famous quote "One eyed king in the blind country". Should he have said that?

 

[cerberus]

Do we need rubber stamps in such high profile institution... well

http://m.economictimes.com/news/eco...raghuram-rajans-exit/articleshow/52812646.cms

What Make you think That Next RBI Governor will be Rubber Stamp.For That Matter Post of RBI Governor Its Not A Separate Constitutional Authority LiKe CAG or CJI But RBI is Part Govt of India Since 12+2 of Board of Directors of RBI are GOI Representatives It More of Govt Institution Than Separate Entity

Wait For Next Appointment To Soon to comment.

 

[danger007]

What Make you think That Next RBI Governor will be Rubber Stamp.For That Matter Post of RBI Governor Its Not A Separate Constitutional Authority LiKe CAG or CJI But RBI is Part Govt of India Since 12+2 of Board of Directors of RBI are GOI Representatives It More of Govt Institution Than Separate Entity

Wait For Next Appointment To Soon to comment.

No i have problem with politics into economy.. Be it subramanyam or Chandra babu naidu.. who offered full crop loans waiver and other loans..

http://wap.business-standard.com/ar...ays-will-implement-scheme-114061801263_1.html

When RBI rejected CBN he turns against RBI and Centre for not implementing loan waiver... since his promise on loan waiver... literally most of farmers stopped paying loans.. and become defaulters.... he released some funds or diverted funds to selective people.. but the amount not enough to pay interest ... these type of schemes to get power will destroy economy...

 

[cerberus]

No i have problem with politics into economy.. Be it subramanyam or Chandra babu naidu.. who offered full crop loans waiver and other loans..

http://wap.business-standard.com/ar...ays-will-implement-scheme-114061801263_1.html

When RBI rejected CBN he turns against RBI and Centre for not implementing loan waiver... since his promise on loan waiver... literally most of farmers stopped paying loans.. and become defaulters.... he released some funds or diverted funds to selective people.. but the amount not enough to pay interest ... these type of schemes to get power will destroy economy...

Mate Its Not Possible In Today's Environment Since Economy became a Political Tool In Core Geopolitics of Today
Since RBI is Unofficial Govt Entity And,MODI want Total Control Over All the Elements of Power Play, RBI will Can't be Exception.If Govt Think Any other Person Can do Job Better its there Call.Our Call is to See there Performance And Judge them on that During Voting in Next Election

The Day Where Govt Want Same Domination Over Constitutional Bodies Like SC or CAG will be Dark Days for Democracy
Which We Witnessed During Emergency of 1975 Hope Modi Don't Go same way

 

[danger007]

Mate Its Not Possible In Today's Environment Since Economy became a Political Tool In Core Geopolitics of Today
Since RBI is Unofficial Govt Entity And,MODI want Total Control Over All the Elements of Power Play, RBI will Can't be Exception.If Govt Think Any other Person Can do Job Better its there Call.Our Call is to See there Performance And Judge them on that During Voting in Next Election

The Day Where Govt Want Same Domination Over Constitutional Bodies Like SC or CAG will be Dark Days for Democracy
Which We Witnessed During Emergency of 1975 Hope Modi Don't Go same way

I don't agree with it.. RBI should be independent to the politics... otherwise we might see artificial growth..

 

[hembo]

While ruing the great brain drain and aspiring to bring back the brilliant minds in various sectors (who may or may not be interested in contributing to India's progress), we have managed to dissuade one of the finest economist of the world, who btw was very keen to contribute to the country's messed up economy (specially in cleaning up the very inefficient banking system and the crony capitalists of India), from doing so.. Just because he had always called a spade a spade and may thus have rubbed a few noob and dim-witted politicians the wrong way... Shameful day for Indians..

 

[cerberus]

I don't agree with it.. RBI should be independent to the politics... otherwise we might see artificial growth..

Well Mate Its One Of Draw Back of Being Capitalist Economy .RBI Governor Ultimately is Govt Employee Like Many other Govt Institutions Like CBI & IB Its Now Included for Power-play Projections

 

[Hulk]

I disagree. Although Rajdeep is hardly a balanced opinion, this particular assessment is precise and well articulated.

Government is accountable to people of India and should have say in policies. Cannot have totally Independent RBI governor doing what he thinks is correct.

 

[axisofevil]

Do we need rubber stamps in such high profile institution... well

http://m.economictimes.com/news/eco...raghuram-rajans-exit/articleshow/52812646.cms

We had rubber stamps for the first 60 yrs under Congress.....So what the big deal now?

 

[Bitter Melon]

http://www.sunday-guardian.com/anal...r-upa?platform=hootsuite#.V2ZPAbF8rGQ.twitter

He has rigged the game by ensuring that the Wholesale Price Index (WPI) gets replaced by the Consumer Price Index (CPI), which is always higher.



The uptick in economic growth has been because of Prime Minister Narendra Modi's fast-tracking of decisions, and has taken place despite RBI Governor Raghuram Rajan's obsessive focus on dampening economic performance by an elevated interest rate regime. Although numerous reasons have been brought forward to explain the BJP's poor performance in the just-concluded Assembly bypolls in Karnataka, MP, Punjab and Bihar, a simmering discontent over the economic situation is not among the causes mentioned. However, the fact is that jobless growth has persisted into the NDA's period in office, and this has combined with a perception that the NDA has thus far not differed very much from the UPA in matters of economic policy. Although Prime Minister Modi is very quietly ensuring that tweaks across the spectrum of governance take place, which, over time will vastly improve the delivery of services to the citizen by the state, this has been imperfectly communicated thus far, with the result that the first signs of a loss of confidence are emerging. Should the NDA lose more than a couple of seats in the coming Gujarat and UP assembly by-elections, the stage will be set for anti-Modi groups and parties to coalesce into a united front, the way the anti-Indira groups did in 1977, although this time around, the BJP is still likely to prevail, even if there is a high index of opposition unity. That is, if Raghuram Rajan permits.

The RBI Governor, who was the personal choice in 2012 of both Wall Street as well as (then) Prime Minister Manmohan Singh for his present job, has ignored the imperative of growth and concentrated only on inflation-targeting. In this, he has rigged the game by ensuring that the Wholesale Price Index (WPI) gets replaced by the Consumer Price Index (CPI), which is always higher. Rajan's determination to keep interest rates high was clear by his first saying that a bountiful harvest would cause inflation and so rates needed to be high, and very soon changing that to claim that a bad harvest would boost prices, so interest rates needed to remain elevated. Either way, the Indian consumer and businessperson lose. Buying a car or a house becomes unaffordable for millions, thereby constricting demand. And domestic companies, who pay double digit interest rates for their capital requirements, are made to compete against foreign companies who get loans at derisory rates of bank interest. Acchhe din, all right, but only for FIIs and those making FDI, not for Indians. The manner in which hot money is being chased since the time when Palaniappan Chidambaram was Finance Minister of India, has resulted in those with foreign passports taking loans from banks in the United States or in Europe and investing that money in Indian banks, thereby gaining several points in interest. Rather than go through such a high-cost route, it would have been better for the state to have itself borrowed such funds from banks abroad!

Raghuram Rajan, who seems to be looking at the Managing Directorship of the IMF as his next job, claims that inflation hurts the poor. Indeed it does, but not as harshly as unemployment.

As economists less wedded to Chicago School monetarist dogma than the RBI Governor have pointed out, a somewhat higher rate of inflation is more than bearable if there is double digit growth, whereas to a person who is lacking work, even constant prices are unbearable.

Although the textbooks that he is following so blindly may not agree, in the real world, food inflation is the result of supply and distribution, hence higher interest rates are ineffective in curbing them. And in a context where inflation in manufactured goods and in services has remained low (at about 2%), killing growth in these high-employment sectors through an elevated interest rate policy simply serves Wall Street at the cost of the domestic economy.

Hopefully, the Finance Ministry will at some stage point this out to the RBI Governor, who thus far has been treated as deferentially by the NDA as he was by the UPA.

Rajan is given credit for "stabilising the rupee". The fact is that the currency stabilised immediately after The Sunday Guardian exposed the cabal of short-sellers behind the rupee's fall in value, thereby exposing their speculative assault on the currency.

India has scant need of a Central bank that looks after the interests of foreign investors at the expense of domestic interests. Rajan needs to accept that central bankers in the countries he admires and whose logic he follows with fealty have ensured ultra-low interest rates.

Unless the RBI Governor switches from a destructive monetarism to the same passion for growth as Prime Minister Narendra Modi has, it is the UPA which will increasingly be smiling at every election held in a country where rigid adherence to Chicago School dogma is killing prospects for the double digit growth the poor of India need and deserve.

 

[arp2041]

Speaking again PM, President even against India is FREEDOM OF EXPRESSION......

But if someone says against Rajan, Kanhaiya, Kejriwal - THIS IS DICTATORSHIP!!!!

Swamy is bad, swamy is evil....remove Swamy (from where?)

 

[Robinhood Pandey]

No i have problem with politics into economy.. Be it subramanyam or Chandra babu naidu.. who offered full crop loans waiver and other loans..

http://wap.business-standard.com/ar...ays-will-implement-scheme-114061801263_1.html

When RBI rejected CBN he turns against RBI and Centre for not implementing loan waiver... since his promise on loan waiver... literally most of farmers stopped paying loans.. and become defaulters.... he released some funds or diverted funds to selective people.. but the amount not enough to pay interest ... these type of schemes to get power will destroy economy...

did these loan waivers by RS Rajashekhar reddy destroy the economy in Andhra ?

if yes where was the hue and cry from u , Anna ? and if no how it was different or better from what CBN is doing right now ?

http://www.thehindu.com/todays-pape...ple-says-rajasekhara-reddy/article1221868.ece

http://indiatoday.intoday.in/story/...dhra-pradesh-order-sops-farmers/1/195790.html

http://www.thehindu.com/todays-pape...ed-with-loan-waiver-scheme/article1297697.ece

 

[conworldus]

Rajan is probably the best Indian central banker ever, and one of the very best in the world. It is a shame that he is forced out after having done some much in such a short period of time.